New York Online Gambling Bill Introduced by Senator Addabbo

Not long after launching online sports betting, New York State is now considering legalizing online gambling, Senator Joseph Addabbo recently introduced Senate Bill 8412, a measure that seeks to authorize interactive gaming in the Empire State. The measure now awaits consideration in the Senate Racing, Gambling, and Wagering Committee.

Details of SB 8412: New York Online Casinos and Poker Sites?

Senator Addaboo’s bills offers insight into how New York online gambling would operate and argues why legalization is a good idea. The bill explains that legalization should occur due to the success of online casinos in other states nearby, such as New Jersey and Pennsylvania, and the resounding success of New York online sports betting to date.

Both are valid points and aim to help the legislation to gain enough support to move forward. The bill estimates that New York would see $475 million in annual state tax payments from online gambling revenues. And even before online gambling begins, New York stands to earn as much as $150 million from fees paid by operators, casinos, and independent contractors connected to the industry.

SB 8412 sets a tax rate of 25% for iGaming, which is significantly lower than the online sports betting rate of 51%. The bill also imposes a $2 million licensing fee on casinos and other operators who wish to offer online gambling in New York. Third party service providers (think BetRivers and DraftKings) would have to pay a much higher licensing fee of $10 million.

Leveraging the Success of Online Sports Betting to Support NY Online Gambling Efforts

Senator Addabbo sees just how well the online sports betting market has fared in New York State and believes legal online gambling would be just as successful. The mobile market launched on January 8^th, and in less than one month, New Yorkers placed over $1.6 billion worth of wagers. That amount broke the previous single-month wagering handle record set by New Jersey in October 2021 when fans wagered $1.3 billion.

Operators paid over $55 million in taxes from just over $112 million in earnings from the January totals. For the month, six operators offered services, with Caesars, DraftKings, and FanDuel hitting the top three as far as revenues were concerned.

The New York sports betting market is setting up to be the largest in the United States, and with online casinos added to the mix, the state would be an iGaming juggernaut. The operators that offer sports betting in New York have experience in online gambling elsewhere, so they could easily obtain the licenses they need to quickly launch casino sites.

Currently, only seven states in the nation offer online casino gaming, three of which are neighbors to New York. New Jersey has the most experience with online gambling, having launched in 2013. The state has 8.8 million people. In comparison, New York has 8.4 million residents.

New York has already reached the top when it comes to sports betting in a short time span, and the same operators offering betting services could cross-sell online gambling to their large customer bases.